A RISK ASSESSMENT MODEL FOR SUPPLY CHAINS

Abstract

Purpose- This research proposes an integrated methodology to assess the risks in supply chains.

Methodology- Regarding the importance of risk management in supply chains, an integrated model including Failure Mode Effects Analysis (FMEA), Analytic Hierarchy Process (AHP) and Weighted Product (WP) is proposed. Within the proposed methodology, firstly the supply chain risks are determined by both benefiting from the literature and a survey among experts including academics and sector representatives. Afterwards, different from the classical FMEA approach, the three factors; detection, severity and occurrence are weighted via AHP. Then, the supply chain risks are prioritized based on these weighted factors and WP.

Findings- Prioritized sub-risks in supply chain and the most important sub-risk are obtained as a result of the proposed methodology.

Conclusion- The study provides a risk assessment methodology which is an important part of risk management process. It is planned to provide benefit both for the practitioners and academics focusing on risks in supply chains.

Keywords

• Risk management,supply chain,FMEA,AHP,WP

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